Canadian Pacific Kansas City reported higher fourth-quarter profits with a 3% increase in operating income to US$1.19 billion and a 1% revenue increase to $2.89 billion. Earnings per share adjusted for one-time items also rose 3% to 98 cents.

Quarterly expenses remained flat, resulting in a record 58.9% operating ratio, a 0.8-point improvement from the previous year. Volume was flat based on revenue ton-miles but up 1% based on carloads and intermodal containers, with coal and intermodal showing growth.

Canadian Pacific Kansas City’s Mexico Midwest Express intermodal service linking Chicago with Mexico experienced a 40% year-over-year volume increase in the fourth quarter. The railway plans to launch dedicated intermodal trains with CSX connecting Mexico and key U.S. cities to offer faster and more reliable service.

The railway expects revenue ton-mile growth of around 5% in 2026, with earnings per share growth of 10% or higher. It plans to invest $1.96 billion in capital projects this year. Operational metrics improved, with car miles per day increasing by 7% to 136.

With revenue ton-miles up 4% and volume up 3% for the full year, Canadian Pacific Kansas City saw an 8% increase in operating income to $4.13 billion, a 4% revenue growth to $11.12 billion, and a 13% rise in earnings per share to $3.33. The 2025 operating ratio was 62.8%, an improvement of 1.6 points.

The railway’s safety metrics improved in 2025, with a 3% decrease in the personal injury rate and a 16% drop in the train accident rate, leading the industry in North America once again. Chief Operating Officer Mark Redd highlighted the network’s record performance levels.

Chief Executive Keith Creel emphasized the railway’s industry-leading revenue and earnings growth over the past two years. He expressed confidence in generating continued top-tier performance in 2026. The railway plans to enhance its infrastructure with centralized traffic control and additional passing sidings in key corridors.

Read more at Yahoo Finance: CPKC profits rise as economy, trade issues drag freight